The Hidden Cost of Approval Bottlenecks
Delayed approvals have real financial consequences:
- Lost early payment discounts
- Late fees or strained vendor terms
- Tied-up working capital
- Increased AP workload chasing approvals
- Unreliable cash forecasts
For mid-market firms handling hundreds of invoices monthly, each day of delay compounds these effects.
Where Approval Bottlenecks Begin
Manual Routing
Invoices bounce between inboxes, especially when roles aren’t clearly defined. If someone’s on vacation or unsure if they need to sign off - delay.
No Defined Approval Policy
Without rules like “invoices > $5K require Director approval,” every invoice is a judgement call.
Exception Handling Takes Time
Mismatched POs, missing receipts, or pricing discrepancies drag things out especially if done manually.
Lack of Visibility
Without a dashboard showing where invoices are stuck, it’s hard to intervene. AP teams end up chasing people by email.
Real Numbers: Manual vs Automated Approval
Fixes That Work: How to Eliminate Bottlenecks
Map the Approval Workflow
Document your current invoice flow. Where do invoices wait? Who delays sign-off? Use this to identify quick wins.
Automate Routing Based on Business Rules
Set up logic like:
- <$1,000 auto-approve
- $1K–$10K → Manager
- $10K → Director + CFO
Escalate automatically after 2 days of no action.
Digitize Approvals with Central Dashboards
Move approvals out of email. Use tools that provide real-time visibility and reminders.
Separate Exceptions from Standard Invoices
Create a workflow that fast-tracks clean invoices while flagging mismatches for review.
Train Approvers & Set SLAs
Make sure approvers understand their role and set expectations (e.g., approve within 48 hours).
What Automation Looks Like in Practice
With AP automation, the invoice never “sits idle.”
Here's how it works:
- OCR captures data from invoice
- System auto-matches to PO and GRN
- Approval routing is triggered instantly
- Approver gets an alert
- If no response in X hours, system escalates
- AP team sees the status at every step
Result: shorter cycles, better vendor relations, more accurate cash flow forecasting.
Approval delays are not just a nuisance, they’re a symptom of disconnected workflows.
By digitizing routing, validation, and tracking, AP teams can cut processing time dramatically while gaining transparency and compliance.
Book a demo to see how Finofo helps finance teams automate approvals, speed up payments, and close faster without the bottlenecks.
